Most individuals believe that crypto is a good investment. People are attracted to new technology.

Most individuals believe that crypto is a good investment, people are attracted to new technology, lack of trust in authorities, people have turned to crypto.

The popularity of the cryptocurrency market has grown exponentially over the past decade. If you look at the market capitalization of the entire industry today and compare it to ten years ago, the difference is striking.

Therefore, it is interesting to know what motivates people to invest in cryptocurrencies.

Guess no more.

A study by the Federal Reserve called the 2022 Diary of Consumer Payment Choices sheds light on this topic. So here are the top three reasons why investors hold crypto

Huge potential investment People are interested in new technologies Some don't trust the US government or the US dollar.

Most individuals own crypto as an investment.

The vast majority of individual investors own cryptocurrencies because they believe it is a good investment. Exactly 67% of investors are crypto owners only in terms of investment.

While this is impressive, it speaks volumes about the industry. It means that most investors are speculating and hoping for a higher price than what they paid.

Coupled with the fact that only 0.3% of those in the United States say they use it to purchase goods and services, it says a lot about the main reason people invest in cryptocurrencies.

Many have their own crypto because they are interested in new technologies.

Another reason to own crypto is that investors want exposure to new technologies. 20.7% of investors are interested in new technologies, which is a good reason for them to buy and hold cryptocurrencies.

Lack of confidence in the US government or the dollar

1.6 percent of investors do not trust the US government or the US dollar. While not much, it reflects investors' belief that US government policies have failed to support the domestic currency, thus investors have returned to cryptocurrencies.

The remaining 8.6% of the respondents fell into other categories.